Siemens Gamesa is to expand its nacelle assembly facility in Taichung to form a regional offshore wind industrial hub together with Taiwan-based suppliers.
The facility is currently under construction and will start production in 2021 to deliver nacelles to Orsted’s Greater Changhua 1&2a offshore wind farm.
The Taichung factory expansion will start, once the nacelle assembly work is completed in 2022, Siemens Gamesa said.
The work will include doubling the plot area to over 60,000 square metres, as well as at least doubling the number of Siemens Gamesa employees working in the factory, the company said.
Two new production halls and a new warehouse will be constructed, encompassing a local hub, and back-end production in Taiwan for Siemens Gamesa’s latest offshore turbine technology.
“This will open a compelling opportunity for a vast range of local suppliers to feed components directly to the factory, thanks to high proximity, and short transportation time to Taichung,” Siemens Gamesa said.
The first project to be supported by the broader manufacturing plant will be Northland Power’s 300MW Hai Long 2 project, the company said.
Siemens Gamesa said the expansion is subject to certain conditions including Hai Long 2’s industrial relevance proposal (IRP) being approved by the Taiwanese authorities and final investment decision by the project partners.
Siemens Gamesa was named as preferred supplier for the turbines in November last year.
In 2019, Siemens Gamesa and Yeong Guan Group sealed an agreement for localized hub and base frame castings for Hai Long 2.
Yeong Guan Group will build a new global casting production factory for offshore wind in Taichung, neighbouring Siemens Gamesa’s plot.
Siemens Gamesa offshore business unit chief executive Andreas Nauen said: “Our actions to localize and expand nacelle manufacturing in Taiwan demonstrate our strong beliefs in both the Taiwanese market and the Asia Pacific region as a whole.
“Supported by proactive policies, strong wind resources, and a proven contribution to combatting climate change, offshore wind is an essential element in the energy mix around the globe.”
Siemens Gamesa has now signed four conditional contracts for the localisation of six different type of nacelle components for Hai Long 2.
All of the components will be delivered to Siemens Gamesa’s Taichung factory as part of the localised nacelle production process.
Three of the contracts include the set up of new local production facilities.
KK Wind Solutions will invest in a new production plant, as well as in the recruitment and the training of a local workforce to enable knowledge transfer.
The factory will manufacture uninterruptible power supplies and power conversion systems.
Sinbon will extend its existing footprint with a new production line for cable manufacturing.
Atech, together with an unnamed existing global supplier, will provide nacelle canopies and spinners.
A new production line will be set-up in Taiwan accordingly, Siemens Gamesa said.
Wurth will leverage its existing footprint in Taiwan and strong local supplier network to locally procure fasteners, it added.
Siemens Gamesa Offshore for Asia-Pacific general manager Niels Steenberg said: “We are very glad to announce the reinforcement of our local supplier footprint with four very experienced wind component manufacturers, and a local company.
“We are confident that they can contribute to our vision to create a greater industrial hub in Taiwan, as a foundation for future exports, and we are looking forward to work with them on the Hai Long 2 project.”
Northland Power executive vice president for development David Povall said: “Our selection of Siemens Gamesa as preferred supplier not only makes sense commercially for the project but also strategically for Taiwan.
“Hai Long’s IRP places specific focus on the export capability of the local supply chain. Our construction and operation timeline allows us to look at new technologies that will be state of the art within APAC.
“On top of that, local talents will be trained as we go. Hence, through Hai Long as the Anchor Project, Taiwan will truly become the APAC Offshore Wind Export Hub for new technology, service, and talents.”